Peter Rice, then President and CEO of Fox Networks Group Inc., speaks at the Milken Institute Global Conference in Beverly Hills, California, on May 3, 2017.
David Paul Morris | Bloomberg | Getty Images
Disney has abruptly fired Peter Rice, its top television content executive, several sources told CNBC on Thursday.
Rice did not know the shot was fired, according to a person with knowledge of the matter.
It was not immediately clear what caused Rice’s sudden departure from the company. According to the New York Times, Rice did not fit into Disney’s corporate culture. Other sources told Variety that the abrupt decision was related to the strategy and had nothing to do with any of Rice’s personal behavior.
A source told CNBC that Rice was seen as a possible candidate to succeed CEO Bob Chapek as Disney’s chief executive. Rice is very similar and respected in Hollywood, and his expulsion is “unheard of” and “important,” the source said.
His contract was renewed in August 2021 and was set to run until 2024. Rice received an undisclosed payment, a source familiar with the matter said.
Rice has more than three decades of experience in the entertainment industry and was promoted to 21st Century Fox. When the sale of the company to Disney ended in 2019, Rice joined the Disney team. Dana Walden, who also made the transition from Fox to Disney, will take over.
Disney confirmed the Walden lift, effective immediately. Rice did not immediately respond to CNBC’s request for comment.
The dismissal comes when Disney is working aggressively to expand its streaming audience. Rice oversaw 20th Television, ABC Entertainment, ABC News and FX, among other brands.
The Disney board expressed support for Chapek, who delivered the news to Rice earlier this week.
“The strength of the Walt Disney Company’s business emerging from the pandemic is a testament to Bob’s leadership and vision for the company’s future,” said Disney Board Chair Susan Arnold in a statement. “At this critical time of business growth and transformation, we are committed to keeping Disney on the path to success today, and Bob and his leadership team have the support and trust of the board.”
– CNBC’s Julia Boorstin and Alexander Sherman contributed to this report.